However, Tor’s anonymity properties can be defeated by an entity that is capable of monitoring the entire network’s ‘entry’ and ‘exit’ nodes, because while onion-routing encrypts traffic, Tor does not add timing obfuscation or use decoy traffic to obfuscate the traffic patterns which can be used to deanonymize users. Tor’s onion-routing encrypts traffic between each hop so that only the final hop, the Tor ‘exit node’, can decrypt the package. Unlike VPNs, Tor provides a ‘circuit’ of three hops that provides better privacy than single-node VPNs, so any single node in Tor can’t deanonymize traffic. Tor is the best-known anonymous overlay network today. More importantly, Nym provides superior privacy to VPNs and can support high-quality of service and low latency through incentives. The mixnet is decentralized, with no trusted third parties, and so does not require a trusted provider like a VPN. The Nym mixnet is an anonymous overlay network that provides strong network-level anonymity, even in the face of powerful systems capable of passively monitoring the entire network. The user must trust that the VPN provider is not using their information in a malicious manner or keeping logs. VPN providers can also fully observe all network traffic between users and the public internet, knowing exactly what services its users are accessing at a given time. VPNs are often misconfigured, however, and even when configured correctly, don’t offer real privacy or adequate resistance to censorship. The most popular network-level privacy solution currently is the VPN (virtual private network), which provides network-level protection via an encrypted tunnel between a user’s computer and one run by a VPN provider. The Nym network can serve as the foundation for a vast range of privacy-enhanced applications that defend the fundamental freedoms of people across the globe against traffic analysis by powerful adversaries. NYM tokens can be transformed into anonymous credentials that allow users to privately prove their “right to use” services in a decentralized and verifiable manner. Rewards given by NYM tokens allow anyone to join the Nym network and enable asustainable economic model for privacy. Nodes in the mixnet are rewarded via a novel proof of mixing scheme that proves that mix nodes are providing a high quality of service. The core component of Nym is a mixnet that protects network traffic metadata for applications, providing communication privacy superior to both VPNs and Tor against global adversaries that can watch the entire internet. The Nym network (“Nym”) is a decentralized and incentivized infrastructure to provision privacy to a broad range of message-based applications and services.
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